5 Steps To Quit a Side Gig You Hate When You Still Need the Money

According to recent research from PYMNTS Intelligence, 41% of consumers have a side hustle these days, and 22% of those with a secondary income source cited having one to cover basic living expenses. In surprising news, the extra income accounted for 43% of the total income of someone with a side hustle.

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Regarding those earning under $50,000, the side hustle accounted for 76% of total income. This research indicates that Americans rely on side gigs to get by. However, there could come a time when you no longer have the energy to balance multiple jobs. 

If you need your side hustle income to help out with expenses but are tired of working so much and want to quit the gig for a better work/life balance or improved mental health, there are ways to do this. 

Here are five steps to quit a side gig you hate when you still need the money.

Step 1: Give Yourself Time to Adjust 

“The first step is being honest with yourself about what you can realistically handle,” said Michael Rodriguez, a CFP and the owner of Equanimity Wealth. “If you’re relying on the money, you can try tapering down the gig slowly instead of quitting all at once.”

You want to give yourself an adjustment period to not shock your finances. This means that you’ll want to set a deadline in advance so that you don’t abruptly drop a supplemental income stream that’s helping you get by. This leads us to the next step.

Step 2: Run a Freedom Audit  

James Francis, a financial expert and CEO of Paradigm Asset Management, suggests conducting a freedom audit to determine what it would take to quit the side gig. 

Here are a few questions to look at: 

• Why are your expenses so high?
• How much of your monthly expenses depend on the side gig?
• How much money do you need to cover the basic living expenses?

You’ll want to run the numbers to see how much of your side gig income needs to be replaced to cover your bills without stressing about getting by. Once you have the numbers clearly outlined in front of you, this could help alleviate some anxiety about dropping the income stream. 

Step 3: Review Your Personal Spending and Trim Expenses 

“Take a look at your spending and start trimming expenses so that your full-time income can support your lifestyle,” noted Rodriquez. You’ll want to review your expenses to determine if there’s any room to find some savings so you don’t have to maintain two jobs to get by. At this point, you’ll want to go through your monthly subscriptions to see if there’s anything that can be cut or negotiated to help you save money. 

You may find that you’re relying on $500 monthly from the side gig to get by, which you could cut from your monthly fixed costs. Sometimes, the extra funds from a side gig could lead to lifestyle inflation. Reviewing your personal spending and conducting a freedom audit will help you figure out how much money you have to make up for outside of your full-time income. 

Step 4: Try To Find a Better Use of Your Time 

You’ll want to take an honest look at the real price of the extra income. You could be compromising your health and relationships by allocating this time towards your secondary gig. The harsh reality is that you could use the hours dedicated to a side gig to build wealth in other ways. 

Francis mentioned that many burned-out side hustlers often fail to realize that their free time is valuable. The two hours that you’re putting into the side gig could be better utilized by reinvesting into a more productive activity, like learning a high-value skill or even trying to become better at your main job to get a raise. Better uses of your time are available, and you don’t have to feel stuck in that second gig. 

Step 5: Invest Your Money To Help With Living Expenses 

The goal is to make your money work for you so that you don’t always have to clock in. Francis suggests redirecting a fraction of that side income towards investments that generate passive income so that you can quit in the near future. You can invest in assets that pay dividends, conservative index funds, or fractional real estate. The goal is to build financial momentum that doesn’t depend on working another shift. It may take some time to see results from your investments, but the good news is that these sacrifices can help you quit that side gig. 

Rodriguez concluded, “Chasing every extra dollar isn’t often worth it, especially if you’re constantly exhausted or missing out on your life. Like anything you do in life, aim to find a balance that actually works for you.”

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Sources:

• PYMTS, “America’s Second Shift: Why Side Hustles Are Now a Financial Lifeline“
• Michael Rodriguez, Equanimity Wealth
• James Francis, Paradigm Asset Management

This article originally appeared on GOBankingRates.com: 5 Steps To Quit a Side Gig You Hate When You Still Need the Money